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Question 2 (15 Marks. Suggested word limit 1,000 words) Elvis had a birthday party at his...

Question 2 (15 Marks. Suggested word limit 1,000 words) Elvis had a birthday party at his home, in Katoomba, New South Wales. One of his guests, Jennifer, is a florist. Elvis has 3 large vases that he would like filled with a variety of Australian wildflowers. He asks Jennifer if she can help him by getting flowers for his large vases. Jennifer is new to town and trying to build business relationships so she is eager to help. Jennifer agrees to help Elvis the first thing the next day. They do not discuss fees. Jennifer arrived at 8am the next day and she filled up the first vase with flowers. Then Elvis arranged them. They looked great. Jennifer was impressed at his flair with colours and arranging flowers. Jennifer didn’t have enough flowers for 2 more vases. She left and promised to return the next day. Overnight, Jennifer emailed Elvis and said that the fee for filling the vases would be $150 per vase. Elvis emailed her back with "No worries - see you tomorrow." Jennifer returned with more flowers and completed filling the other two vases with flowers. The following day, Jennifer sent Elvis an invoice for $450: Made up of $150 for each bunch of flowers for each of the 3 vases. Elvis seeks your advice on the legal issues. a) Briefly explain what a contract is and how a contract is formed. b) When was the contract formed between Elvis and Jennifer? c) What are the basic terms of the contract between Elvis and Jennifer? d) How much is Elvis contractually obliged to pay Jennifer?

Solutions

Expert Solution

CONTRACT:- an agreement is formed when the offer is accepted and when that agreement will be in written form and enforceable by law. this will be known as contract.

also, contract is made for a consideration i.e something in return.

how contract form:- a contract is formed when parties to contract ready to be legally bound for what they enter into contract.

a contract is formed only when the parties to contract agree to perform on promises which they made to enter into it.

in case of any issue, court will also looked forward to offer acceptance consideration and so on.

b) contract formed when jennifer told elvis the consideration for bring the flowers and elvis agreed to that and also ready to pay her that form the contract here. as this is consideration and also jennifer complete her part of obligation(promise) to bring him tge flowers

c) basic term b/w jennifer and elvis is that the contract is express contract i.e they both communicate in words and then contract formed.. not implied contract because nothing is gesturised by them.

d) 450$ is contractually obliged by elvis to pay jennifer


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